New Push On Product Liability

September 14, 1991|By Steve Toloken, Chicago Tribune.

WASHINGTON — A group made up mostly of Republican senators and Illinois Gov. Jim Edgar has reopened a decade-long battle by pushing for a federal product liability law, saying ``frivolous liability lawsuits`` are hurting U.S. businesses and forcing consumers to pay higher prices.

``Uniform product liability will boost our competitiveness because U.S. companies are now being forced to move offshore, where product liability laws are weaker or more predictable,`` Edgar said in a statement on behalf of the National Governors` Association. Michael Belletire, an Edgar aide, presented the statement at a Thursday hearing of the Consumer Subcommittee of the Senate Commerce Committee.

The bill provides incentives to settle disputes out of court, would limit the liability of sellers to instances of actual negligence and allows punitive damages only when manufacturers or sellers have engaged in ``egregious conduct,`` said Sen. Robert Kasten (R-Wis.), the bill`s sponsor.

Opponents argued that the bill reduces consumer rights by making it more difficult to win liability cases.

``This Product Liability Fairness Act undertakes to punish a citizen for his exercise of his constitutional right to a trial by jury,`` said Sen. Ernest Hollings (D-S.C.), chairman of the Senate Commerce Committee.

But Kasten countered that ``product liability reform streamlines an expensive and inefficient litigation system while offering fair compensation to injured parties.``

The Wisconsin Republican has pushed for such legislation since 1981 and is optimistic that Congress will pass it because of its sponsorship by 28 Republicans and 8 Democrats.

But Sen. John McCain, (R-Ariz.), a subcommittee member, said it would be difficult for such legislation to pass the House. A McCain aide said that trial lawyers, a leading opponent of the legislation, would wield influence in the heavily Democratic House.

An aide to Sen. Jay Rockefeller of West Virginia, a key Democratic sponsor of the bill, said the Bush administration`s support should make its passage easier.